opus2002

I am getting confused in the application forms here. When they ask for income, what do they mean? Does this mean just for the applicant or for the household?

Here is what each one asked for:

- Citi: annual wages and salary.

- Chase: gross income.

- Bank of America: (pretty clear here) your income, other income, household income

If it is just personal income, how do non-working spouse get credit cards?

clacko

its good that we have citicards.....we have no wages or salary....we have always been asked for household income.....but we aren't doing the dairy thing....cant find a use for the mi we have except for the occasional ug or relative awards....

philemer

It's not too critical what you declare. I always put TOTAL household & business income down, plus a few thousand more (gifts, lottery winnings, etc).

I've never been asked to verify income or send in tax returns. With a business card I suppose they 'could' ask but they've never asked me.

MidnightLight

The Fed clarified last year that under the CARD Act, credit card companies generally must consider only individual income when evaluating credit applications. The one allowed exception is for applicants in "community property" states (CA, AZ, TX, etc), where spouses are basically assumed by default to jointly own all property.

VTFlyerMAN

That's an obligation on the credit card companies, not a credit card applicant. No one should lie on a credit card application (it is a crime). If the application is ambiguous, however, then using household income is fine.

nwflyboy

Yup. What they said.

I applied for a Bank of America visa card online last week. In the past, I've never seen the income requests broken out between individual and spouse, but this time they seemed to at least be trying.

FWIW my spouse and I each have a decent income, hers is slightly higher right now. We're certainly not wealthy by anyone's definition, but our combined household income does look better than either of ours alone. Duh.

On the B of A online app, I was surprised that when I entered my income (I used our combined household income, as I always do), and even when I left the "other income" field blank, it popped up a field labeled "source of other income" (even though I had not indicated I had any "other income). It wouldn't let me complete the application without filling in that field so I just entered "spouse's salary".

It accepted that, and I got instant approval.

I do live in a community property state, or as my wife says "what's mine is mine, and what's yours is mine too." Works both ways, dear.

opus2002

That's interesting. How would most non-working spouse get credit cards then with essentially zero income? Makes you wonder what all these regulations really do.

Dr_wanderlust

This provision does seem to counter the Equal Credit Opportunity Act which in part targeted the income status of stay at home partners.

The new provision does not only affect non-working spouses, but affects anyone where one souse makes a lot more than the other. What stinks is any debt (mortgages, car notes, etc) listed on your credit reports count 100% against the lower salary spouse and it may look like the lower-earner has a high debt-to-income when, in fact, that is not the case when both incomes are counted.

chandu2013

This might not belong on this forum. Moderators, please accept my apologies and feel free to move it to the relevant forum.

My question is: a lot of startups aren't able to pay cash but pay in stock options at the end of the year. What do you put down in the "Annual income" field on credit card apps? Can stock options be considered income? This is my first job straight out of graduate school so no income in the previous 2 years. Any thoughts?

Also, what about targeted offers received in the mail? Can I apply for those since, presumably, my creditworthiness has been vetted?

PainCorp

Targetted, pre-approved and pre-qualified are three different things. Targeted only means you bought something or met some qualifications for a different sign on bonus kind of thing.

poser

From Citi:

Annual Income:
For example, current or reasonably expected salary, wages, bonuses, tips, commission. Please note that alimony, child support or separate maintenance income need not to be revealed if you do not wish to have it considered as a basis for repaying this obligation.


Other Annual Income:
For example, annual amounts from interest or dividends, social security or retirement benefits, rental income, alimony, child support or separate maintenance payments.<br />
Please note that alimony, child support or separate maintenance income need not to be revealed if you do not wish to have it considered as a basis for repaying this obligation.

caGALINDO

Wanna know what I do? Write down 5 big figures and eeny, meeny, miny, moe...

shopper711

what is the difference between pre-apprived and pre-qualified?

PainCorp

I haven't dug into that too much, but my understanding is pre-approved means you're credit has been pulled, or you're guaranteed an approval, pre-qualified probably means that from what they know you will get the card based on income, etc.

If anyone can correct me, feel free.

chandu2013

I meant pre-approved